The companies said CIT will acquire about $1.26 billion in commercial loan commitments, $785 million of which are outstanding. The companies agreed to the deal on Monday and CIT expects to complete the purchase during the first quarter. Flagstar Bank is a subsidiary of Flagstar Bancorp Inc.

Flagstar Bancorp, based in Troy, Mich., said it plans to focus on its nationwide mortgage business and its Michigan community banking business.

Shares of CIT rose 40 cents to close at $39.04. Flagstar Bancorp stock rose 85 cents, or 4.4%, to close at $20.25.

Crain’s New York Business is the trusted voice of the New York business community—connecting businesses across the five boroughs by providing analysis and opinion on how to navigate New York’s complex business and political landscape.